Prop 33 - Good or Bad For Landlords?

Question

Can someone explain in simple terms what prop 33 means in California? Does this help me or hurt me? I have an investment property in Los Angeles county, my tenant is paying me on time.   Who benefits from this prop?

Sam Yin · Answer

I am going to have to second Jeff and Nathan on this one. Vote NO.

As it is, the current rent control laws sprinkled across CA create unnecessary challenges for new landlords. It's NOT JUST the rent caps, it all the other conditions that come with it too. Case in point: LA city... and most recently, in the dark of night without warning, Pomona.

I know there will be some on this forum who may disagree and will have their personal stories of how to overcome it and work around it. It is true that one could overcome it. But the way I see it is that, in general, someone who is new to the business and is looking to break in and grow will have barriers that can likely drive them out of REI.

If it were up to me, I would just let the market dictate the rents and it will find equilibrium on its own. It is part of Capitalism. People will pay based on their needs and the supply.

Tim Ryan · Answer

Diran, sell your Cali rentals and buy out of state.

Best advice I've offered in years...

Jeff S. · Answer

As a landlord, you should vote No on Prop 33.

Costa-Hawkins restricts most control laws that local cities and counties can impose.  Prop 33 repeals Costa-Hawkins, allowing cities unlimited authority to impose any rent control they want.  It’s bad enough now.  Prop 33 will enable them to run as wild as they wish with rent control.

Note that one sponsor of Prop 33 is Renters and Homeowners for Rent Control.  That should give you a clue.

For more details, read this and this.

Nathan Gesner · Answer

Vote NO on Prop 33. As Jeff stated, it would give local governments the authority to impose rent control on Landlords and the State won't be able to stop them.

Rent control is bad. If you don't already know that, I recommend you read about how it hurts landlords and renters.

Prop 33 - Good or Bad For Landlords?

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